Bruce, go PNP!
A cautionary note: the downside for PNP is it will rise with the juniors but if/ when the juniors get hit again by a liquidity crisis, PNP will go limp while the solid producers hang in there or climb. i'm talking AEM goldcorp kinross even iamgold. for this reason my totally undiversified portfolio IS diversified between producers and junior loving stocks like PNP and EDV and the juniors themselves like DNR and UXG.
so the downside for PNP is a repeat of mid august, with a lack of bids to prop up the juniors, causing PNP to get margin calls on its portfolio.
however, august is notoriously bad for mining stocks. now that we are in full-bull mode with gold, silver, oil and uranium, with the bids much livelier, pnp's portfolio should be safer than it was back then.
also helping PNP (and I know this is obvious) is the general tone of the gold market, which seems to have taken off on its own toward the upside regardless of what conventional stocks are doing, as casey research has noted.
dow down, gold up. dow up, gold up. it has a great rhythm to it!
as for you liking "the announcement about them buying in their own stock over the next year," i like that too.
however, pinetree is leveraged, just met some margin calls, so won't have money to burn on its own stock, is my guess.
on the other hand, endeavour mining capital, EDV, a similar stock, made a similar announcement and does have money to buy stock with.
they are both a way to spread out the risk of investing in promising juniors. they both take macro positions, so they can move nicely in asset value during a bull run. probably they can move up more sharply than say, vanguard precious metals.
mr. market seems to be currently guessing that pnp's NAV is going to be a lot better at the end of the year than it was in august.
Michael |
